Muslimin criticizes IBRA policy

JAKARTA (JP): Minister of Forestry and Plantations Muslimin Nasution insisted on Monday the Indonesian Bank Restructuring Agency (IBRA) could not seize forest concessions from debtors.

Muslimin said forest areas managed by concessionaires could not be calculated as company assets and must be considered the government's property granted to timber companies under logging contracts.

The definition would preclude concession areas being surrendered as a collateral asset to IBRA.

"IBRA should consult with us before taking concession areas as collateral assets," Muslimin said.

IBRA's chairman Glenn M. Yusuf said over the weekend that the ministry's recent move to revoke or to refuse renewal of several forest concessions had inflicted losses on the agency.

He said some debt-burdened forest concession holders had surrendered their concession areas to the agency as collateral assets for the payment of their debts to the government.

Last week the government revoked eight forest concessions totaling 1.17 million hectares owned jointly by former president Soeharto's children and their business associates as part of the anticorruption, collusion and nepotism campaign.

For the same reason the government also said it would not renew 13 other forest concessions covering 1.36 million hectares when they expire next March.

The revoked concessions included those owned by timber tycoon Mohamad "Bob" Hasan, whose business group Kalimanis Group is included in IBRA's list of the biggest debtors.

Several analysts fear that the government's move would lead to a shortage of log supplies in the country.

But, Director General of Forest Utilization Waskito Suryodibroto assured concerned parties adequate log supplies existed in the country.

Waskito said the government would also punish timber companies which failed to report to the government changes in the ownership of their companies.

He said under the forestry law, timber companies should inform the ministry of any changes in their ownership.(gis)